We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Market Structure Simulation Essay Sample

essay
The whole doc is available only for registered users OPEN DOC

Get Full Essay

Get access to this section to get all the help you need with your essay and educational goals.

Get Access

Market Structure Simulation Essay Sample

In the simulation Differentiating between Market Structures I learned about the four market structures, which are perfect competition, monopoly, monopolistic competition, and oligopoly. I learned about cost and revenue curves within the market structures and how these structures work within an organization. The simulation also dealt with prisoner’s dilemma, price war and duopoly. The prisoner dilemma is known as a two-person game and demonstrates the difficulties of cooperate tactics when faced with different scenarios and situations. The simulation was informative and provided examples of the four market structure. The simulation presented the CEO of the transportation company with different scenarios in regard to the freight transportation industry.

Within the competitive market the transportation company was able to maintain ground and run a successful company despite their competition. In perfect competition this includes sellers and buyers with no barriers for the entry of new firms and each seller happens to be a price taker: with maximize profits and complete information (University of Phoenix, 2012). Marginal revenues and marginal cost were also discussed. It showed how firms maximize their profits when marginal revenues are equal to the marginal cost. “A monopolist’s marginal revenue is always below its price” (Colander, 2012).

The prices of these organizations are similar if not identical within all organizations. The simulation discussed the organizations chemical division the organization and how being a oligopoly is considered a duopoly which consist of more than one firm. Great example would be supermarkets like Publix and Windixe. The simulation also discussed the monopolistic market. In comparison to Wal-Mart being monopolistic the organization in the simulation was monopolistic as well. Profits are maximized by the MR=MC (University of Phoenix, 2012). In equilibrium the advantage occurs when the most efficient price and output of the organization is achieved. The factors that lead to equilibrium are supply and demand. In the simulation some disadvantages were presented where a monopoly was developed. This is a great disadvantage for the organization because the organization can charge any price, which results in consumers not being able as many products as they would like if at all any of the products being sold. In conclusion it is imperative for each organization to analyze their market structure because it aide them in the price options and output amounts. The four market structures are perfect competition, monopoly, monopolistic competition, and oligopoly. The simulation showed examples of each market structure and how they operate. It provided the disadvantages and advantages they present within an organization’s structure.

References

Colander, D. (2010). Economics. New York, NY: McGraw-Hill/Irwin Publishers. University of Phoenix. (2012). Differentiating between Market Structures. Retrieved April, 24,2012 from University of Phoenix, rEsource, Simulation, ECO365- Principles of Microeconomics Web site.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Microeconomics Market Theory

Theory of Market Demand: The quantities of a product that people are willing and able to purchase at various prices during some specific time period, ceteris peribus. 1 QxD = f(Px, ad, income (normal good, inferior good), Pother (substitutes, complements), consumer expectation, regulations, number of buyers,……) . All factors except Px either shift or rotate the Demand for good x. Therefore, the linear demand function...

Meanning of Managerial Economics

Managerial economics/applied microeconomics can be defined as the use of economic analysis to make business decisions involving the best use of organizations scarce resources/the application of economic theory and the tools of analysis of decision science to examine how an organization can achieve her objectives most efficiently. M.E may also be defined as the study of economic theories, logic and methodology, which are generally applied...

Supply and Demand Simulation

The Supply and Demand Simulation consist of microeconomics and macroeconomics concepts. The concepts are explained and how they apply to the principle of microeconomics and macroeconomics. The simulations presents shifts in the supply and demand curve, the rationale for the shift is given. Each shift is analyzed showing the effects of the equilibrium price, quantity, and decision making for the company presented. An explanation of...

Micro Economic

1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money, the value of the money. No 5. Explain the two main...

Supply and Demand Simulation

In the supply and demand simulation a neighborhood called Atlantis is given for the setting. Atlantis is a small city with open spaces, low population, and a low crime rate. There are plenty of sidewalks and street systems for easy access to the highway. The housing in Atlantis is detached homes and apartments. The supply and demand simulation consists of microeconomics and macroeconomics. The simulation...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Can't find What you were Looking for?

Get access to our huge, continuously updated knowledge base

The next update will be in:
14 : 59 : 59
Become a Member